n The primary purpose of the trial balance is to test the 1) ) To determine owners equity b) reconding ef transactions c) equality of debit and cred it balances in the ledger. d) analysis of transactions. 2) Which of the following has a mormal credit balance a) Mortgage Payable b) Unearsed Art Fees c) Art Fees Earned d) All of the above 3) Which of the following is an example of an accrual a) Wages incurred but mot yet paid b) The purchase of office supplies c) Payment of two year insurance in advance d) Tuition revenue collected in advance. )Which of the following is a Contra Asset a) Art Equipment b) Sales Returns and Allowances ) Accumulated Depreciation d) Land 5) The balance in Allowance for Uncollectible Accounts must be considered prior to end of period adjustment when using which of the following methods. a) Direct charge-off method b) Sum of the Years Digits c)Accounts Receivable aging method/A llowance for Bad Debts d) Percentage of aet sales method. which financial Statement is Prepared First a) Income Statement b) Statement of Cash Flow ) Statement of Owner's Equity d) Balance Sheet 7) In a period of rising prices, which of the following inventory methods generally results n the lowest net income a) Average Cost b)Lido c) Fifo d) Specific idestification 8) a 120 Day Note issued on May 30, 2016 becomes due on A) 9252016 C) 821/2016 B)9/262016 D) None of the above 9) Which of the following accounts decrease Owner's Equity a) Cash b) Expenses e) Prepaid Insurance d) Revenu Deposit in Trasit b) Bank ere )Oustanding checks 11) Which of the Solowing accousts has a nermal rnda halener C. Reat Expense D. Can E All of the abeve B. ABect ealy balance sheet accosats C. Allect beth income statement and balance sheet acceunts a) debit side of the lacome Statement colmns and the adi side of the Balance St cms b) credit side of the lncome Statementcoluns and the debit side of he Balano Sont es c) debit side ef both the lntome Statement and the Balance Sheet elemt d aredit side of both the lncome Statement and Balasee Sheet 14) The entry establshing a$200.00 petty cash fund would include a a) debit to Cash For $200.00 b) debit to Pelty Cash for 5200 00 )credit to Perity Cash for 5200.00 4) debit to Macelaneeas espense for 3200.00 15. Theintnrest accrued e. SS00 at 6%Ser 60 days B54 C 565.00 D.5180 E5420 16) Accounts payab-appearen which of fellewing a) Balance Shoet b) Incame Statement (Staiement of Ouner's equity. 4) Statemrst of Cash Flows e) Trasaction staemen A. Refer to merchandise that customers reburn to the seller after the sale &Refer ts reductions in the selling price of marchandise sold to oustomers C. Represent cash discounts. D. Represent trade discounts E. Have a normal credit balae ) a company had S43 mining from petty cash that wa..at accounted fr by Pm ae The correct precedare is a) Debir Cash ever and Short for $43.00 b) Credit Cash over and sheet for 543.00 c) Debit Petty Cash for $43 d) Call the police e) Credit Cash for $43.00 19) An an.alysis dat explains any dillerences between thechecking account balance to tb. records and the balance reported on the bank statement is an a) Internal Audit ) Bank Reconciliation ) Bank Audit d) Trial Reconciliatiaen d) Trial Balance 20) A method of estimating bad debts espense that invelves a detailed ecamination of outstanding accousts and ther length of time past due is the a) Direct write off methed